New Split Updates
None
New Candidate Updates
| ASD
- American Standard $66.77 (+1.11)
|
ASD managed another closing high on Friday. The stock seems to
have good buying support since pullbacks have been minimal for
the last two weeks. We will want to see daily volume get above
475,000 shares as ASD continues to climb, in order to confirm the
strength of the rally. Support should come in at $65 and
resistance is Friday's high of $66.90. Momentum traders could
look to get in on a break above $67 on daily volume of at least
475,000 shares.
| BJ
- BJ's Wholesale Club $49.15 (+0.84)
|
BJ's gap higher on 5/22 has turned out to be the breakaway gap
that we were hoping for. However, this doesn't mean that the
stock isn't vulnerable to a pullback. We don't like the fact
that sellers have been knocking the stock down after three
consecutive higher opens. However, if BJ can make it over the
$50 hurdle next week, we think it has a good chance of making it
to $60. That said traders should look for a strong volume
(800,000 share) break above $50 as the next best entry point. On
the flip side, support should come in at the top of the gap at
$46.30.
| BKH
- Black Hills Corporation $55.96 (-1.31)
|
BKH bounced off support at $55 today and closed just below
resistance at its 5-dma of $56.09. It's never a great sign when
the 5-dma is acting as resistance, since this is a sure sign of
near-term weakness. However, BKH might be able to turn it around
if the stock can manage to close above its 10-dma at $56.77,
since the 10-dma is what provided support for the last run up.
Traders looking to initiate a position in BKH could do so on a
bounce off $55 or a close above heavy resistance at %58.50.
Either way, look for volume to come in at 200,000 shares or more
for the day.
| CEFT
- Concord EFS $50.50 (-0.10)
|
CEFT has come up against heavy resistance at $51.50. It has
tried to pierce this level four days in a row. Our hopes are
that this resistance does not hold up and that sellers will dry
up going into next week. That said if resistance proves to be
too strong, support should come in at $49. Traders should not
look to enter CEFT until it can close above $51.50 on volume of
no less than 4 million shares.
| CIMA
- Cima Labs Inc. $74.75 (-0.05)
|
CIMA kept to a fairly tight intraday range on Friday, as the
stock continues to build a base around $75. Support has come in
at $73 and resistance has established itself at $78.35
(Thursday's high). Traders who wish to play CIMA should wait for
the stock to confirm a breakout over $78.35 with daily volume of
at least 400,000 shares.
| HRB
- H&R Block $60.96 (+1.24)
|
HRB's MACD is set to issue another buy signal with one more up
day like Friday's. Support has come in at $59 and resistance
should be showing up at $61. Traders looking to initiate
positions in HRB could do so on a break over $61.75 on volume of
at least 600,000 shares. Volume is key on this break, so don't
cheat if volume is lacking.
| MTG
- MGIC Investment $68.63 (+1.79)
|
MTG pulled back on Friday after its initial breakout move on
Thursday. We are not too worried at this point, but will watch
that volume doesn't accelerate any more when the stock drops.
Support should be coming in at the $66.80 level and resistance
has been established at Friday's high of $70.65. Traders should
hold off on MTG until it can close above its neckline of $70 on
volume of at least 850,000 shares.
New Momentum Updates
| BUCA
- Buca, Inc. $22.40 (-2.39)
|
On Friday, BUCA missed hitting our stop by a mere three cents.
It was a good thing too because the stock proceeded to rally for
the rest of the session. BUCA may spend some time stabilizing
around the $23 level, so traders should hold off on initiating
positions until BUCA can turn up the volume and its MACD can
issue a buy signal.
| GTK
- GTECH Holdings Corp. $37.25 (-0.15)
|
GTK has found good support at $36.50. For a while it looked as
if our long-time play wanted to roll over and fall back to the
$35 level. However, Thursday's rally on good volume of 1.5
million shares has us thinking that GTK is not done yet.
Resistance has come in at $38, so traders looking to hop on board
should do so on a close above $38 on volume of at least 500,000
shares.
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